Question 1

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.
A) benefits sought
B) loyalty status
C) usage rate
D) user status
E) occasion

Accepted Answer

Behavioral segmentation can be based on different variables such as usage rate, loyalty status, user status, benefits sought, occasion etc. In this case, the segment is categorized based on usage rate i.e. how often the product is used. This leads to three categories - light users, medium users and heavy users. Therefore, the best choice is C) usage rate.

Question 2

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
A) gender
B) benefit
C) occasion
D) income
E) geographic

Accepted Answer

Gilron Holidays uses income as the basis for its segmentation approach to target customers with an annual salary exceeding $100,000.

Question 3

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.
A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation
E) occasion segmentation

Accepted Answer

This is segmentation by usage rate as it is based on the amount and frequency of product usage by customers.

Question 4

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.
A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation

Accepted Answer

This is the definition of benefit segmentation, which involves dividing the market based on the benefits that consumers are seeking in a product or service. This type of segmentation focuses on identifying the different needs and desires of consumers, which can then be targeted with specific marketing messages and product offerings.

Question 5

Which of the following is true about multivariable segmentation systems?
A) Marketers using multiple segmentation bases tend to ignore smaller markets.
B) Marketers often use multiple segmentation bases to control inflation.
C) Multiple segmentation rarely involves the use of demographic data.
D) Multiple segmentation is ineffective in large markets.
E) Multiple segmentation bases help identify smaller, better-defined target groups.

Accepted Answer

Multiple segmentation systems involving the use of multiple segmentation bases help identify smaller and better-defined target groups. This allows marketers to create targeted marketing strategies that speak directly to the needs and preferences of these specific groups. It is not true that marketers using multiple segmentation bases tend to ignore smaller markets, and there is no evidence to suggest that marketers use multiple segmentation bases to control inflation. Demographic data is often used in multiple segmentation systems, which can be effective in large markets as well as smaller ones.

Question 6

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

Accepted Answer

Occasion segmentation is the process of dividing the market into segments based on the occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. This can include seasonal occasions like Christmas, cultural occasions like Diwali, or personal occasions like birthdays and weddings. By understanding when buyers are likely to purchase, marketers can create targeted campaigns to increase sales during these periods.

Question 7

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________.
A) occasion segmentation
B) benefit segmentation
C) age and life-cycle segmentation
D) gender segmentation
E) behavioral segmentation

Accepted Answer

Tropicana is using occasion segmentation by promoting their orange juice as a refreshing drink that can be consumed at any time of day, indicating that the occasion or time of day is the basis for their market segmentation.

Question 8

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?
A) operating characteristics
B) loyalty status
C) usage rate
D) geographic location
E) benefits sought

Accepted Answer

The answer of Which of the following is NOT a...

Question 9

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.
A) user status
B) degree of loyalty
C) income
D) geographic location
E) benefit-seeking attitudes

Accepted Answer

Consumers who show loyalty to brands or companies allow marketers to segment them based on their degree of brand loyalty, which can help in tailoring marketing efforts towards retaining loyal customers or converting occasional buyers into loyal ones. The other options mentioned are not directly related to loyalty segmentation.

Question 10

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?
A) Consumers tend to pay more for products that are targeted at their respective age group or generation.
B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

Accepted Answer

Behavioral segmentation based on loyalty variable helps a company to identify customers who are shifting away from its brand. Hence, it can take corrective actions to retain them by addressing the marketing weaknesses.

Question 11

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

Accepted Answer

The answer of ________ segmentation has long been used in...

Question 12

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?
A) gender segmentation
B) income segmentation
C) benefit segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Accepted Answer

The description suggests that Calypso Motors is segmenting the market based on the benefits that the Proteus offers, combining luxury and agility. This is an example of benefit segmentation, where the company is targeting customers who value these specific benefits in a car, regardless of their gender, income, geographic location, or age/life-cycle stage.

Question 13

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?
A) gender segmentation
B) psychographic segmentation
C) occasion segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Accepted Answer

Malcolm is using occasion segmentation by targeting the winter season, which is a busy time for snowboarding enthusiasts. This approach involves dividing the market into segments based on specific occasions or events, such as holidays, seasons, or cultural events.

Question 14

Which of the following is NOT a benefit of using multivariable segmentation systems?
A) help companies identify key customer segments
B) help companies reach key customer segments more efficiently
C) help companies more accurately price their products to appeal to key customer segments
D) help companies better understand key customer segments
E) help companies tailor market offering to the needs of the key customer segments

Accepted Answer

Multivariable segmentation systems do not necessarily help companies price their products more accurately. While the insights gained from segmentation may inform pricing decisions to some extent, pricing is typically determined based on a range of factors beyond just customer segmentation.

Question 15

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.
A) weather patterns
B) psychographics
C) ethical traits
D) budgets and financial status
E) personal characteristics

Accepted Answer

The answer of Business marketers use geographic, demographic, benefit, user...

Question 16

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?
A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status

Accepted Answer

User status refers to segmenting markets based on the behavior of the consumers towards a product, including nonusers, ex-users, potential users, first-time users, and regular users. Usage rates, gender status, income status, and loyalty status are different segmentation variables.

Question 17

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender
E) Geographic

Accepted Answer

The answer of ________ segmentation divides buyers into segments based...

Question 18

In the context of behavioral segmentation, who among the following is a potential user?
A) Anita, who recently had a baby
B) Peter, who recently changed his job
C) Mary, who enrolled as a graduate student in a university last year
D) Gina, who opened a dental clinic in Orange County
E) Raj, who is planning a trip to Hawaii with friends

Accepted Answer

Behavioral segmentation refers to dividing customers into groups based on their behaviors, such as their purchase history or their use of a product or service. Among the given options, Anita, who recently had a baby, is a potential user because she can be classified based on her purchase behavior for baby products. The remaining options do not provide enough information to classify them based on their behavior. Therefore, A is the best choice in this context.

Question 19

________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Accepted Answer

Psychographic segmentation divides buyers into different segments based on lifestyle or personality characteristics. It considers the attitudes, values, interests, and behavior of consumers rather than just demographic factors like age or income. Psychographic segmentation can be useful in identifying the emotions and motivations that drive consumer behavior and tailoring marketing messages to different segments.

Question 20

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation

Accepted Answer

Psychographic segmentation involves dividing a market into different groups based on lifestyle, values, personality, and behavior. Marketers who use psychographic segmentation base their marketing strategies on lifestyle appeals, as they target consumers with similar attitudes and behaviors. Therefore, option D is the best choice.

Quiz 7: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Which of the following is true about multivariable segmentation systems?

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________.

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

Which of the following is NOT a benefit of using multivariable segmentation systems?

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

In the context of behavioral segmentation, who among the following is a potential user?

________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.